Solution-Calculate the unit variable costs within the

Calculate the unit variable costs within the relevant range

Reference no: EM133175158

Question - Pharoah Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as follows.

Output in Units	Rent Cost	Direct Materials
1,000	$6,760	$5,400
2,000	6,760	7,200
3,000	10,816	7,200
4,000	10,816	9,600
5,000	10,816	12,000
6,000	10,816	14,400
7,000	10,816	16,800
8,000	10,816	19,200
9,000	13,520	39,614
10,000	13,520	47,320
11,000	13,520	59,488

Required -

(a) What the relevant range of activity for this product based on the cost behavior of each input.

(b) Calculate the unit variable costs within the relevant range.

Reference no: EM133175158

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Calculate the unit variable costs within the relevant range

Reference no: EM133175158

Reference no: EM133175158

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